Tom Davis (pictured high), chief gross sales officer at Deephaven Mortgage, was shocked to see a current financial institution survey displaying what number of householders had been fully unaware of dwelling fairness merchandise.
“It was one of many high 10 banks in america, and of their survey, it mentioned like 35% of their mortgage debtors didn’t know dwelling fairness merchandise existed,” Davis informed Mortgage Skilled America.
Differentiating your self from the competitors
Davis mentioned one other advantage of pitching second-lien merchandise is that it units you above your competitors. In case your clients are purchasing round, you may name out those that are solely making an attempt to supply them a refinance.
“As an advisor or a mortgage officer, you must current each,” Davis mentioned. “You’ll be able to say, ‘You possibly can do a refi money out in your first, however you are going to lose this 2.5%, 3% mortgage price that you’ll by no means see in your lifetime once more, greater than possible. Or you would hold that, shield that proper. That’s an necessary asset: low-cost cash. After which you would do a second lien for the quantity that you just want at this price.’
“And if that borrower is speaking to another person a couple of first lien, and so they’re solely giving them one choice, and also you go as an advisor and also you say, ‘Hey, I do know you are in all probability speaking to another person, however here is an alternative choice.’ I believe it is an important alternative for mortgage officers to essentially differentiate themselves and convey worth over mortgage officers simply pushing that first.”
